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Hearing on the Draft Budget

Today, the National Association of Municipalities of Albania, with the participation of the mayors @Z.Oltion Çaçi Mr.Ilir Xhakolli Mr.Fisnik Qosja Mr.@albert melyshi, as well as the Executive Director Ms.Adelina Farrici, was part of the hearing session of the Committee on Economy, Employment and Finance to discuss the Draft Budget 2026.

The representatives of the National Association of Municipalities of Albania welcomed the increase in the local government budget for 2026, which according to the draft budget reaches 97.8 billion lek, with an increase of 7.8 billion lek or about 9% compared to 2025.

During the discussion, the main challenges of local finances were highlighted and the National Association of Municipalities of Albania presented concrete recommendations for improving local finances.

Main recommendations of the SHKBSH:

Progressive increase of the Unconditional Transfer (above 1% of GDP)

Support for municipalities in difficulty and solutions for arrears

Abolition of VAT for municipal investments and services

Creation of a dedicated fund for local investments

Review of the Unconditional Transfer formula reflecting real fiscal capacities

Improvement of criteria and increase of the Performance Grant fund

Expanding the scope of taxes allocated to municipalities

Increasing the percentage of mineral royalties that go to local government

Increasing the fund for civil emergencies and the possibility of its transfer

Standardization of delegated functions with the relevant sectoral financing

SHKBSH remains committed to strengthening the autonomy and financial sustainability of local government, in the service of citizens and sustainable local development.

Parliament of Albania

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